The question for investors is, “where do I find value in the cask whisky marketplace today?” Our advice is to look at younger or medium-aged casks from distilleries whose brand equity is rising. Casks of whisky from these distilleries were available at that time if you knew the right people to talk to, and compared to the prices today were incredibly cheap. In most countries, few people would’ve even heard of Macallan, Springbank, Ardbeg, Bowmore, etc. It was less than 3% of the global whisky market. In the 1980s and 1990s, single malt whisky was only just becoming established (most of it was tipped into blends at that point). Let’s return to the guiding principle of buy low and sell high. At this point are you even in profit? Nothing is of course certain, but the risk factor is certainly very high! Even if the whisky is in very good shape, they will only buy the cask for what they can sell the bottles for, adding on their margins and the taxes that HMRC encumbers all bottlers with. The trade is business-savvy and whisky-knowledgeable. Secondly, a cask of this age will only have one main exit strategy, which are trade customers in the form of Independent Bottlers. You’ll need to have very regular cask health checks. Also, if the ABV drops below 40% then it can no longer be called Scotch whisky. Here’s why… Firstly, how much longer does the whisky in the cask have to mature? Even if it is currently in good health, at some point the oak will start to overpower the whisky, and the value will plummet if it tastes like liquid wood. Is it a good investment though? You would have to consider that your highly-prized purchase and its value are fraught with danger. You may even enjoy the reflective glow of a certain amount of local media attention. It is also likely that there will be many admiring, envious comments from your friends, whisky aficionados, and people in general. Therefore, if you could find a cask of 25+ year Macallan and be able to afford the highly-likely six-figure purchase price, then this would certainly go down as a very prestigious cask to own. Casks though do have a shelf life and have to be bottled at some point. The same has happened not just in the world of certain whisky bottles, but even more so in the whisky cask marketplace.Ĭurrently, there seems to be an almost cult-like obsession to own an old cask from a famous single malt distillery, especially Macallan. It’s reasonable to assume that the price will continue to rise, and you are purchasing something with intrinsic value, however, it is also reasonable to think that the investment value has gone from this particular expression. Is purchasing a bottle of Yamasaki 18 today a good investment? That is certainly debatable. This month it was selling for £1000 on the UK Scotch Auction sites! The price now has completely spiraled upwards to a point where the quality of whisky has no relationship with the value of the bottle. For instance, in the early noughties, you could pick up a bottle of Yamazaki 18-year-old for about £40. The simple guiding principle that all investors aspire to and agree on is to obviously buy low and sell high.
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